The Earth is rapidly getting warmer, threatening serious and even catastrophic disruption to our societies and to the natural environment on which we depend. Over the course of the 20th century the average temperature increased by around 0.6 C globally, by almost 1 C in Europe and by no less than 5 C in the Arctic. This man-made warming is already having many disruptive effects around the globe.
Sea levels are rising as a result of melting glaciers and ice sheets, threatening to flood low-lying communities. Extreme weather conditions; floods, droughts, storms are becoming more severe, more frequent and more costly in some parts of the world. And many endangered species may be pushed to extinction over the coming decades as climate change affects their traditional habitats.

The EU Emissions Trading Scheme (ETS) is a world first and a major weapon in Europe's fight against climate change. The innovative system has turned carbon dioxide emissions into a tradeable commodity. They can now be bought and sold like any other of the thousands of products traded on world markets today.
The scheme works by placing a limit or a 'cap' on the amount of carbon dioxide participating installations - currently around 10,500 across the European Union - can emit every year. If an installation emits more than its allowance, it must either pay a very hefty fine or buy surplus allowances from companies that have managed to stay below their limit. The system ensures that overall CO2 emissions from the plants covered are cut in the most cost effective way.

The European Commission is proposing legislation to bring the aviation sector into the European Union's pioneering emissions trading scheme (EU ETS) in order to control the rapid growth in CO2 emissions from air travel. Until now airlines have not been subject to the constraints on energy consumption or greenhouse gas emissions that other businesses have to live with. Emissions from domestic flights are covered by the Kyoto Protocol's emission targets for developed countries, but international aviation - which makes up the vast majority of flights - is not. In addition, jet fuel for international flights has historically been exempted from taxation. Hence the need for policy action.

Today the European Union has the most environmentally friendly arsenal of rules in the world and has done more to tackle pressing ecological problems, such as climate change, than any other major power.
But it has not always been like this. Caring for the environment did not feature in the Treaty of Rome, the document that gave birth to the modern day EU. Yet environmental problems were never far away. Europe’s love affair with the car was moving into top gear, industry was busy belching out pollutants and raw sewage was being pumped into our rivers and seas.

The renewable energy sector has developed a lot the last ten years — a largely ignored toddler has become a wilful teenager. Decisions that can help it mature further will depend on understanding what has nurtured its growth so far.